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Title: EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR EMPLOYMENT LEVELS IN KENYA
Authors: PETER KIMINZA KIMILE
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PETER KIMINZA KIMILE Lecturer, Faculty of Business, Chuka University, Kenya
MLA 8 KIMILE, PETER K. "EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR EMPLOYMENT LEVELS IN KENYA." Int. j. of Social Science and Economic Research, vol. 3, no. 1, Jan. 2018, pp. 397-405, ijsser.org/more2018.php?id=26. Accessed 2018. APA KIMILE, P. K. (2018, January). EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR EMPLOYMENT LEVELS IN KENYA. Int. j. of Social Science and Economic Research, 3(1), 397-405. Retrieved from ijsser.org/more2018.php?id=26 Chicago KIMILE, PETER K. "EFFECT OF FOREIGN DIRECT INVESTMENT ON PRIVATE SECTOR EMPLOYMENT LEVELS IN KENYA." Int. j. of Social Science and Economic Research 3, no. 1 (January 2018), 397-405. Accessed , 2018. ijsser.org/more2018.php?id=26.
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Abstract: Foreign direct investment in all economies is a major contributor to the economic growth. The attraction of foreign investors is a fundamental goal for state policymakers all over the globe, and especially in developing countries, where lack of capital is one of the key constraints to economic prosperity. The statistical trend indicates that there is a slow increase in private employment creation in Kenya. The purpose of this study was to assess the effect of Foreign Direct Investment on private sector wage levels in Kenya. Purposive sampling method was used to select a sample of macroeconomic data on FDI and Private employment levels for 30 years between 1985 and 2014. Error correction model was developed from the data, which was used to make inferences on the relationship between FDI and private employment levels. Inferential statistics were obtained by applying the PcGive Ox-metrics and E-views. Prior tests on unit root were done using Augmented Dickey Fuller (ADF) test and Phillips Perron (PP) tests in comparison with the mackinnon critical value of standard neyman pearson framework. Also co integration was done through the use of Engle - granger (EG) approach and the Johansen Juselius approach to determine whether a long-run relationship exists.

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